Institutional investors continued to deploy capital into private real estate strategies in Q4, with investment consultants playing a decisive role in shaping allocation pacing, strategy selection, and risk positioning. Despite ongoing uncertainty around interest rates, valuations, and transaction volume, consultant-led activity underscores sustained institutional commitment to real estate as a foundational allocation within diversified private markets portfolios.
Across the quarter, consultants guided capital toward a broad mix of core, core plus, value-add, and opportunistic real estate strategies, with a notable emphasis on sector specialization and income durability. Large public pension plans anchored much of the activity, pairing sizable core and core-plus commitments with targeted allocations to higher-return strategies across industrial, multifamily, healthcare, and logistics. The data highlights both the continued influence of consultants in real estate decision-making and the steady role real assets play in institutional portfolios amid an evolving market backdrop.
Quarter-in-Review: Consultant Influence & Allocation Activity
During Q4, consultants including The Townsend Group, Meketa Investment Group, StepStone Group, Grosvenor Capital Management, Callan Associates, Aon, Aksia, NEPC, Albourne, and Mercer Investment Consulting collectively guided billions of dollars into private real estate commitments. Allocation activity spanned commingled funds, separate accounts, and co-investments, with consultants directing capital toward a concentrated group of established managers and repeat relationships across the real estate landscape.
Large public pension plans remained the primary drivers of activity, anchoring commitments across both core-oriented strategies and higher-return value-add and opportunistic vehicles. Across consultants, the quarter reinforced a consistent focus on portfolio construction discipline, sector diversification, and manager specialization as institutions recalibrate real estate exposure for the next phase of the cycle.
Want clearer insight into how consultants and pensions are allocating across real estate strategies? Book a demo of Dakota Marketplace to track consultant-led commitments and allocator activity.
1. The Townsend Group: $4.208B
New York State Common Retirement Fund – $2.38B
- Bridge Logistic Properties Develop-to-Core Fund – Core Plus Real Estate
- RFM Affordable Housing Fund – Opportunistic Real Estate
- Bell Partners Growth & Income Fund, L.P. – Opportunistic Real Estate
- Artemis Real Estate Partners Healthcare Fund III – Value-Add Real Estate
- Kayne Anderson Real Estate Partners VII – Value-Add Real Estate
- Jadian Real Estate Fund II – Opportunistic Real Estate
- Jadian Real Estate Fund II Co-Investment – Co-Investment Real Estate
- Alexan Memorial - MetLife Separate Account – Opportunistic Real Estate
- Seattle Gateway I & II - LaSalle Separate Account – Opportunistic Real Estate
- Santal Thousand Oaks - BlackRock Separate Account – Opportunistic Real Estate
- American South Real Estate Fund II – Opportunistic Real Estate
- Empire GCM RE Anchor Fund – Co-Investment Real Estate
New Mexico State Investment Council – $700M
- Bell Partners Growth & Income Fund, L.P. – Opportunistic Real Estate
- Carlyle Property Investors – Core Plus Real Estate
- ACORE Credit PArtners III – Value-Add Real Estate
- Clarion Lion Industrial Trust – Core Real Estate
Florida State Board of Administration – $380.3M
- Bozzuto I – Opportunistic Real Estate
- Heitman Montecito III – Core Real Estate
- Heitman Crescent BTR – Opportunistic Real Estate
- iStorage II – Opportunistic Real Estate
- CenterSquare Real Estate Securities – Private REIT
Los Angeles Fire & Police Pension System – $225M
- Wolff Credit Partners IV, L.P. – Value-Add Real Estate
- Realty Income U.S. Core Plus Fund, LP – Core Plus Real Estate
- Carlyle Property Investors – Core Plus Real Estate
Ohio Police and Fire Pension Fund – $135M
- Blue Owl Real Estate Fund VII – Value-Add Real Estate
- Cloud Capital Fund Feeder LP – Opportunistic Real Estate
Orange County Employees Retirement System – $105M
- EQT Exeter Europe Logistics Value Fund V – Value-Add Real Estate
Kansas Public Employees Retirement System – $100M
- Blue Owl Real Estate Fund VII – Value-Add Real Estate
Los Angeles City Employees’ Retirement System – $90M
- Realty Income U.S. Core Plus Fund, LP – Core Plus Real Estate
- Caro Real Estate Credit Fund, LP – Real Estate Debt
San Bernardino County Employee Retirement Association – $65M
- PRECap VIII – Real Estate Debt
Maryland State Retirement & Pension System – $25M
- Galvanize Real Estate Fund – Opportunistic Real Estate
2. Meketa Investment Group: $1.689B
California Public Employees’ Retirement Systems – $950M
- Carlyle Realty Partners X – Opportunistic Real Estate
- Blackstone Property Partners Life Sciences - 2025 SPV L.P. – Core Plus Real Estate
- KSL Capital Partners Tactical Opportunities Fund II – Real Estate Debt
Oregon Public Employees Retirement Fund – $428M
- Blue Owl Real Estate Fund VII – Value-Add Real Estate
- Abacus Multi-Family Partners Fund VII – Value-Add Real Estate
- Hines European Property Partners Fund – Core Plus Real Estate
- Clarion Alternative Sectors Fund GP – Opportunistic Real Estate
San Joaquin County Employees Retirement Association – $100M
- Clarion Alternative Sectors Fund GP – Opportunistic Real Estate
Plymouth County Retirement Association – $80M
- TA Realty Core Property Fund – Core Real Estate
The City of San Jose Office of Retirement Services – $76M
- Kayne Anderson Core Real Estate – Core Real Estate
- IPI Partners Fund III – Value-Add Real Estate
- Corebridge U.S. Real Estate Fund V (A) – Value-Add Real Estate
- Cloud Capital Fund II – Opportunistic Real Estate
- Kayne Anderson Real Estate Partners VII – Value-Add Real Estate
Metropolitan Government of Nashville & Davidson County Employees Benefit Trust Fund – $40M
- Stonelake Opportunity Partners VIII – Opportunistic Real Estate
City of San Jose Police and Fire Department Retirement – $15M
- TA Realty Core Property Fund – Core Real Estate
3. StepStone Group: $725M
Los Angeles County Employees’ Retirement Association – $300M
- Bell Partners Growth & Income Fund, L.P. – Opportunistic Real Estate
New York State Teachers Retirement System – $150M
- Starwood Distressed Opportunity XIII – Opportunistic Real Estate
Los Angeles Water & Power Employees’ Retirement Plan – $150M
- Starwood Distressed Opportunity Fund XIII U.S. PI, L.P. – Opportunistic Real Estate
- EQT Exeter Europe Logistics Value FUnd V – Value-Add Real Estate
Teachers Retirement System of Louisiana – $125M
- Cabot Industrial Value Fund VIII – Value-Add Real Estate
See where institutional capital is moving across core, value-add, and opportunistic real estate. Book a demo of Dakota Marketplace to monitor consultant-led allocation trends.
4. Grosvenor Capital Management, L.P.: $650M
Teacher Retirement System of Texas – $650M
- Cerberus Proper Partners – Opportunistic Real Estate
- Asana Partners Fund IV, LP – Value-Add Real Estate
- Temerity Strategic Partners II – Opportunistic Real Estate
- Verto Logistics JVCo SCA – Opportunistic Real Estate
5. Callan Associates: $616M
North Carolina Retirement Systems – $500M
- LBA Logistics Value Fund X, LP – Value-Add Real Estate
- Harrison Street Real Estate Partners X Co-Invest – Co-Investment Real Estate
- Harrison Street Real Estate Partners X – Core Real Estate
Mendocino County Employees Retirement Association – $66M
- LaSalle US Property Fund – Core Real Estate
- Barings Core Property Fund – Core Real Estate
Alaska Retirement Management Board – $50M
- BlackRock US Core Property Fund – Core Real Estate
6. AON: $400M
Arkansas Teacher Retirement System – $300M
- Realty Income U.S. Core Plus Fund, LP – Core Plus Real Estate
- Raith Real Estate Fund IV – Opportunistic Real Estate
Kentucky Teachers Retirement System – $100M
- AG Net Lease Realty V – Value-Add Real Estate
7. Aksia: $390M
Pennsylvania Public School Employees’ Retirement – $340M
- Cabot Industrial Value Fund VIII – Value-Add Real Estate
- LEM Multifamily Fund VII – Value-Add Real Estate
- Graceada Partners Fund IV-QP, LP – Value-Add Real Estate
Nebraska Investment Council – $50M
- Northwood U.S. Real Estate Fund – Opportunistic Real Estate
8. NEPC: $279M
Pennsylvania State Employees Retirement System – $100M
- Blue Owl Real Estate Fund VII – Value-Add Real Estate
North Dakota State Investment Board – $75M
- Ares US Real Estate Fund XI – Value-Add Real Estate
Alameda County Employees’ Retirement Association – $35M
- Artemis Real Estate Partners Healthcare Fund III – Value-Add Real Estate
Fresno County Employees Retirement Association – $29M
- PIMCO European Data Center Opportunity Fund – Opportunistic Real Estate
Chicago Policemen’s Annuity & Benefit Fund – $20M
- TA Realty Value-Add Fund XIV – Value-Add Real Estate
Boston Retirement System – $20M
- Related Real Estate Fund IV – Opportunistic Real Estate
9. Albourne: $250M
Connecticut Retirement Plans and Trust Funds – $250M
- CRPTF-GCM Emerging Manager Partnership L.P. 2026-2 RE Investment Series – Value-Add Real Estate
10. Mercer Investment Consulting: $150M
Indiana Public Retirement System – $150M
- Hammes Income & Growth Healthcare Fund – Core Real Estate
- Abacus Multi-Family Partners Fund VII – Value-Add Real Estate
Allocation Discipline Remains Intact
Consultant-led activity in Q4 reinforced private real estate’s continued role as a long-term allocation within institutional portfolios, even as investors navigate a slower transaction environment and evolving valuation dynamics. Across core, core plus, value-add, and opportunistic strategies, consultants guided pension systems toward managers positioned to generate durable income, protect downside risk, and capitalize on selective dislocation.
As capital flowed into established real estate platforms, repeat manager relationships, and sector-focused strategies, a consistent theme emerged: consultants emphasized portfolio construction discipline, sector diversification, and asset-level fundamentals over near-term market timing. With billions allocated during the quarter, private real estate remains a strategically supported allocation, underpinned by sustained consultant confidence in the asset class’s role within institutional private markets programs.
Consultants continue to shape institutional real estate portfolios. Book a demo of Dakota Marketplace to stay ahead of allocation activity and manager demand.
